Market is flat as Covid resurgence continues

A screen shows the closing figure for the Kospi in a trading room at Hana Bank in Jung District, central Seoul, on Wednesday. [YONHAP]

Shares closed nearly flat on Wednesday as investor sentiment was spooked by increasing Covid-19 cases in the country. The won fell against the dollar.

The benchmark Kospi edged up 2.59 points, or 0.11 percent, to close at 2,369.32.

Trading volume was high at about 941 million shares worth some 14.3 trillion won ($12 billion), with losers outnumbering gainers 522 to 324.

Foreigners purchased a net 190 billion won, extending their buying spree to a fourth session, while institutions sold a net 411 billion won. Retail investors bought a net 193 billion won.

Daily new Covid-19 cases in Korea bounced back to over 300 amid a nationwide epidemic.

Health authorities said they would have to raise the social distancing scheme to the highest Level Three from the current Level Two if the numbers do not flatten this week.

Under the strongest antivirus curbs, gatherings with 10 or more people are banned, and restrictions are imposed on schools, cafes, movie theaters and wedding halls.

"The Covid-19 toll is highly likely to affect the local stock index for a while," said Kiwoom Securities analyst Seo Sang-young.

Large caps on the main bourse closed mixed.

Samsung Electronics closed flat at 56,400 won, while No. 2 chipmaker SK hynix added 2.34 percent to 78,800 won.

Internet portal giant Naver gained 2.77 percent to 334,000 won, with its rival Kakao up 2.89 percent to 392,000 won.

Samsung Biologics shed 0.37 percent to 812,000 won, while Celltrion advanced 1.32 percent to 310,500 won.

LG Chem spiked up 6.7 percent to 757,000 won, and rechargeable battery maker Samsung SDI rose 2.82 percent to 456,500 won.

Hyundai Motor, the country's largest automaker, climbed 0.9 percent to 167,500 won, but steelmaker Posco lost 3.74 percent to 193,000 won.

The secondary Kosdaq rose 5.04 points, or 0.6 percent, to close at 841.35.

The local currency closed at 1,186.8 won against the dollar, up 1.7 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year bonds added 1.0 basis point to 0.835 percent, and the yield on ten-year government bonds added 2.9 basis points to 0.68 percent.

BY LEE JEE-YOUNG, YONHAP [lee.jeeyoung1@joongang.co.kr]